Asian monies mixed late, peso succumbs to pressure
Asian monies mixed late, peso succumbs to pressure
By Alan Yonan Jr., Dow Jones, Singapore
The Philippine peso's early rally was cut short on lingering
security concerns Tuesday, while it was a mixed performance for
other regional currencies in Asian trading.
The peso opened the session stronger, extending its gains from
Monday afternoon as it defied negative market sentiment stemming
from a series of deadly bomb blasts in the Philippines over the
past week.
Some traders suspected the Philippine authorities may have
intervened in the market to bolster the local currency, but
central bank Governor Rafael Buenaventura said that wasn't the
case.
"We remain cautious on the peso and maintain our buy-on-dips
recommendation for the dollar against the peso," Bank of America
said in a note to clients.
The dollar closed at 53.240 peso on the Philippine Dealing
System, up from 53.205 peso late Monday.
Barclays Capital, meanwhile, said it was "not yet ready to
turn bearish on the peso."
President Gloria Macapagal Arroyo's government has
distinguished itself from Indonesia in that it has been an
"implacable" opponent of domestic terrorism, Barclays said.
In addition, maintaining a stable currency is one of the
Philippine central bank's primary policy objectives, Barclays
added.
Further, the high implied yields in the market for non-
deliverable forwards provide a degree of protection for long-peso
positions, and argue for a stabilization of the currency in
coming sessions, Barclays said.
The New Taiwan dollar gave up its early gains to finish
weaker. The U.S. dollar closed at NT$34.926, up from NT$34.895
Monday.
Overseas U.S. dollar selling and fund inflows to the local
stock market initially boosted the local currency. However,
interest in the New Taiwan dollar waned as the stock market
reversed course later in the day.
The Singapore dollar tracked the yen lower in light trade.
Late in Asia the U.S. dollar was quoted at S$1.7855, up from
S$1.7803 late Monday.
Against the yen, the dollar was quoted at 125.30 yen near the
end of Asian trading, up from 124.87 yen late Monday in New York.
The South Korean won was little changed as equity linked
dollar sales offset the yen's drag on the local currency.
The dollar ended at 1,243.5 won compared with Monday's close
of 1,243.4 won.
Foreign investors sold dollars to settle trades after snapping
up more than a net 500 billion won worth of shares Monday and
Friday.
The Indonesian rupiah strengthened amid a shortage of funds in
the interbank market and some dollar selling on behalf of the
central bank, traders said.
The dollar ended Asian trading at its intraday high of Rp
9,190, down slightly from Rp 9,200 at Monday's close.
With little news to trade on in the Thai market, the baht
followed the lead of the yen and the Singapore dollar.
Near the end of Asian trading the dollar was quoted at 43.650
baht, up from 43.570 baht late Monday.
Traders said the baht was also pressured by importers buying
dollars ahead of a market-closing holiday Wednesday.